cay - mmi value comparison, page-4

First 4 Last

Share
Profile

Follow
Wolf9

48 Posts.

4

01/05/18

01:16

Post #: 32785564
Share

Originally posted by grahod ↑

Compare MMI’s Bauxite Hills project in Queensland to CAY’s potential Cameroon bauxite interest.

MMI are about to ship their first load of bauxite to begin the expected 2MTPA. Market factoring in commissioning risks etc and valuing the company with a market cap of around $400mil. If you read Argonaut’s buy recommendation on the 21st Aug 2017 they are valuing MMI at $550 market cap when 2MTPA is in full swing.

MMI’s Bauxite Hills project has a resource of 92MT, MMI in the coming years ramping up production to 5MTPA and expected mine life is 17 years.

Canyon’s potential interest in Cameroon (Minin Martap/Ngaoundal) has an indicated/inferred resource of 550MT and expected mine life of over 60 years if producing at 7MTPA.

MMI and CAY capex and operating costs similar, CAY most probably going to get a higher amount per ton due to much lower impurities. Both are/will be DSO(Direct Shipping Operations)

CAY are proposing an initial shipment of 5MTPA with an expectation of multiple times that pending rail upgrade.

Bauxite and Alumina markets in full bull trend. RIO expect demand to grow every year until 2030. China holds similar views.

Taking into account what the market is currently valuing MMI at and comparing the size of the respected resources and quality, a valuation of $2.5 - $3.0 Bil market cap for CAY is certainly not out of the question.

If CAY upgrade the rail and IMO they will, exporting 20MTPA will certainly push the share price past $10.

Taking into account of the robust economics, mine life and long term demand for Alumina, finance shouldn’t be a problem either.

Basically it’s a monster deposit, low overburden, high grade with low impurities. The project viability isn’t questionable. The risk is failure to secure the license to mine the deposit. IMO they have it and it’s going through bureaucratic formalities.

Expand

Thanks for sharing. Im not a geologist but the numbers are great. Current expenses kept very low. Once they secure the mining license, funding should be simple enough.

CAY Price at posting: 11.5¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

STP

Radiopharm extends radioimmunotherapy trial to 5 more cancer types

SGP

Things finally 'looking different' for up-and-down Hot Stock tip Stockland

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

There are more pages in this discussion • 7 more messages in this thread...

First 4 Last

Add CAY (ASX) to my watchlist

(20min delay)
Last 16.5¢		Change 0.000(0.00%)		Mkt cap ! $127.2M

Open	High	Low	Value	Volume
16.5¢	16.5¢	16.0¢	$76.82K	472.3K

Buyers (Bids)

No.	Vol.	Price($)
3	200000	16.0¢

Sellers (Offers)

Price($)	Vol.	No.
17.0¢	1204949	9

View Market Depth

No.	Vol.	Price($)
8	4366729	0.080
3	5025316	0.079
3	3750000	0.076
2	45000	0.070
1	40000	0.067

Price($)	Vol.	No.
0.083	150000	2
0.084	345680	4
0.085	364900	4
0.086	430000	2
0.087	230000	1

Last trade - 16.10pm 19/11/2024 (20 minute delay)

CAY (ASX) Chart

cay - mmi value comparison, page-4

Top Stories

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Radiopharm extends radioimmunotherapy trial to 5 more cancer types

Things finally 'looking different' for up-and-down Hot Stock tip Stockland

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Buyers (Bids)

Sellers (Offers)